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November 08, 2006


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The author Rudyard Kipling, from "The Elephant's Child" in Just So Stories
I keep six honest serving-men
(They taught me all I knew);
Their names are What and Why and When
And How and Where and Who.

Maybe a good place to start for Kaleb Udui Jr. is to begin by answering these six questions as Pacific Savings is put under his receivership. Just a thought.

this is why i never use banks that are not FDIC insured.

im not much of a bank person..so i dont know all the pathways involved.
but, reading the headings, i get the impression that it needs a highly qualified person who can do the plus, minus or equations.

just a thought...
why not bring in Mr. Tewid? perhaps he can help tip the scale/balanced whatever's missing or hidden?(if there is)..
after all,..government funds brought it back when it first encountered this same problem....

Never trusted a bank that pays interest on checking accounts.

few years back the Republic bailed the bank out with a million dollar cash, question is: has the government got its money back?

Or, would this be like PMA?

I would like more about the WHY element or character! I got over 37,000 dollars in a PSB account, and how will I get to access some cash for personal use?

I meant PSB loan account....btw, does this mean my loan will be wiped out right away?

Uchemelis my friend kekmal soam el omdikl ra Joe. You know when anyone mentions PMAir,it elicits that pavlovian-like response deep in my mind's eye. Like PMair, the fall of Pacific Savings will be swept under the rug with no inquiry or govt. investigation. My bet is that Senator Reklai and other high ranking govt. officials withdrew their deposits well ahead of the bank being put into receivership. Its sad that always the people most effected and left holding the bag are the ones who need the most access to their funds. I got the following information from Pacific Magazine, connect the dots and draw your own conclusions.


Pacific Savings Bank’s long-time vice president, John DeVivo, has left the bank. The current president of the Fiji Development Bank, Tukana Bovoro, will return to Palau to act as a temporary consultant to the bank. He previously served in Palau with that nation’s development bank. Pacific Savings Bank was founded by Senate President and PSB board chairman Johnny Reklai and its current president Tim Taunton and is now the largest locally-owned bank in Palau. - BP

Pacific Magazine
Business Briefs
Sept/Oct 2006

We should get Voices involved here, so they make "noises" to make sure that if we have an ENRON-like case in Palau, the crooks will be prosecuted to the max!

Though I stand to (likely) benefit from not having to pay thousands of dollars in loans back to the nearly defunct bank, my heart goes out to the poor who will loose their savings!

Joe my friend actually I heard from a "source" that the JR had to fork his own money to cover some withdrawals this past summer.
The source also said that a "certain" depositor was asked not to withdraw so much because the bank was short in cash.

thanks for the info from your "source" e Uchelmelei, and same to Joe's alarming bet.

i am led to wonder if this JR guy had most, if not all, of his money deposited in PSB? I would assume he had tons of safely deposited in Hawaii, Guam local banks or outside Palau for insurance benefits. Ebuul ar ou savings/echecking accts ra PSB el rubdois rar mechebuul el mla mechudel a ududir ellulab tirkal merau el omekmerau er tir?!?!

i'm confused. does this mean that most depositors can't be paid back?

e kedung,

it sounds like we're in a deep 'hole again. not to worry, our republic will certainly provide all the necessary funds to keep PSB going...again.

im just wondering...why dosnt Sen. Diaz bring this to the air so everyone can have "xpress urself" about this matter?

x-mas is coming and....

Damn, ORES! That some serious money,er loan your talking man/girl. As an appointed reciever of the bank, you are advised to email me for further instruction regarding the payment of your loan. Failure to comply with this order will result in the matter being forwarded to the Attorney General of the Republic of Palau for prosecution.

You all got srewed. They, some of our leaders, have been screwing us for years. Here comes the hide and seek game of where is the money and who did it? It is disgusting!

Good for the loan takers....

Bad for the depositors....

...What about our dividends for our stocks PSB and PMA?

I know, I know. I keep beating upon an old horse but what can I do if we cannot learn our lessons.
And the ROP keeps pouring money trying to salvage a sinking ship... Millions of public money all gone.

I hope Diaz goes on the air and bring this to discussion. This is his opt. to redeam himself from all the mess he's brought the country into.

This case must be investigated and prosecutions must be made to make sure it does not happen again. Techebuul ar chebuul el chad lou savings er tial bank.

Tia omerchorch lomeruul.

Tia kmal telemall. I disagree though that people should stop paying their loans.

Remember that your loans are depositors money.

come on, it's not my fault if i stop paying my loan. it's the bank and it's management that should be held liable to pay back your money. they screwed up, now let them live up to their mistakes... now that the table is turned.

What a mess!!!!!!Listen Palauans, this is the time to take things to the extreme....take the owners to the court...and SUE the MF"expletives".....until they are out of money....

PSB owners got nasty...then why not get nasty yourself....take Palau GOV to the court if you have too...

This is not the time to cry and mope over spilled milk...make {PSB}clean it up...Remember one thing, inorder for the court to award compensation, they have to go by the list...of who filed first and has a legit claim....

"Things don't get done by sitting around, get up and break the walls down"

It might take sometime for you to see your "washington, jackson, etc..." but at least your on the LIST.

Oh by the way, PSB might be broke, but there is always ROP-GOV...if things don't go your way...you have the power to vote....

"think about it"...:)

Man, this is it. TERKEL MENGELOUCH lou bank er tiang el NGILAI a UDUDIR ras ucheir ra MEDIKIK tial BANK needs to be either put to DEATH BY HANGING or LIFE IN Prison AT DA LEAST! This this is just GETTING TO FUCK'EN OLD ea rechbuul el CHAD RA BELUU ar DA ONCE SUFFERING! Johny Reklai and all of 'EM FUCKERS that think they can Continue to PLAY GAMES with our CONTRY all NEEDS TO BE BURN AT THE STAKE e MEDOBECH A DEKELIR! If the GOVERNMENT thus not PERSECUTE THEM then somebody NEEDS to take matter into there OWN HAND AND SHOW THIS FOOLS WHAT SUFFERING FEELS LIKE!


I'm with you. Something must be done. I feel for the many people who rely on Pacific Savings Bank. The Holidays are coming up and I really feel bad for the parents and their kids.


I wish i didn't deposit my lil' amount of money in this bank. i relied on it for the future education, knowing that all this things are happening carelessly in Palau is so shame. What happen to PM AIR... ELECTRICITY POWER.... NOW ITS PACIFIC SAVINGS BANK.. WHATS THE NEXT..? please dont just think of yourself.. if u want Palau to be a better place than stand for what is right even when you are standing alone. why does most of Palau generation now a day are running away from their home?

What is next is the Pension PLan!! It justlost a $million!!!!

It's good to witness the legitimately felt anger here about the PSB demise or the corruption behind it.

I only wish to incite more blog-investigation on the issue by having further discussion on the missing linkages here.

A. Who authorized the CSPP to loan (another) million dollar to PSB? Are the board members of CSPP/administrator clients, directors or directly/indirectly linked to PSB? Do they have personal interests in PSB's success/failures?

B. Specifically, who in the government (executive) endorsed the loan/transaction or the bailout proposal?

C. Why were there not public consultations, given the CSPP is owned by the government employees and depositors?

D. Are the banks in Palau legally required to submit quarterly financial statements to FIC?

E. Is the Congress going to admit that it had stalled the passage of the (improved) FIC Act and is thus actually responsible for this wrath brought about by the scums (PSB directors) who had taken advantage of a "loophole" in our financial institution laws to fill their pockets and flee the country? Not to rationalize the thiefs' actions but the OEK's refusal to pass the amended FIC Act is the root of all these problems! FIC is powerless, resourceless to guard Belau's financial institutions but nevertheless has been committed and ready to act!!! That is the truth, and you should carefully scrutinize the OEK, for its members who are against the passage of the amended FIC Act (to strengthen the regulatory framework of Belau governing financial institutions, empower FIC, and give it NEEDED resources, etc.) will obviously deflect from the real issues and attempt to place blames elsewhere.

F. Is it possible to pass an overnight law making what the PSB scums did to be (retroactively) a crime and then pursue them?

G. Lastly, the House Legal counsel (Imelda Nakamura) in her capacity as a member of the Brige Link yelled out recently to attack FIC's immediate actions to shut down the bank and place it under receivership, claiming FIC's actions and our government's response to be "communist or dictarorial)"- it's dictatorial! This is quite a scary revelation on how the HOD will act to address this PSB demise if the HOD's legal counsel reacted with such a poor understanding of the whole mess. How can we expect our Delegates to be properly and effectively informed of the underlying, critical issues behind this national mess if the HOD legal counsel is so clueless?

On my last question/point "G." see below a full citation of the HOD legal counsel's public email condemning FIC:

"Alii Bridgers:

What is going on??

A government agency goes into a private business and closes it???
Without a COURT ORDER???
WITHOUT NOTICE to the Bank and its customers???

The government and its agencies should only "regulate"
not forcibly take over private businesses!!!

During, the Presidential Press Conference, yesterday, November 8, FIC Chairman,
Ngirmang, asked the President to move the bill forward to amend existing laws so
that FIC
(Financial Institution Commission) can "broaden" its powers so FIC not only can
close a
bank, it also can take over the management of the BANK??
It's already a MONSTER but it wants more power???

Please!! Where are our due process rights? Where is consumer protection for
people of Palau!!!!
Why is FIC targeting a locally owned bank????

I'm writing this as a frustrated bank customer who has money tied up
because of this mess!!!
This mess that FIC has created, by its actions, not only messes up my life,
it affects, hundreds and thousands of people of Palau who have invested
their time, money and lifesavings in the "so-called Free Market Enterprise" of


ohhhh goodness i think we need Kuniwo Nakumura to be our President again. Our govenment is really going down. Next thing we know everything in Government and all the private will shut down.

Mrs. Perez,

your candidate is also involved in this mess. Wait and see.

Tim Taunton---PSB's majority shareholder/CEO/President---suddenly departed Palau? To Guam on a midnight flight then to where? Well, just where he went, we know. And just what name he used (seems to be an alias) we know. And when he arrived there (Nov. 12) we know. But why hasn't any officials followed up on that end? Like what officers/shareholders/directors got $1.4 million loans just before the bank went under? Is Mr. Taunton in touch with PSB or Palau Government officials? If not, why? What about his wife? And hopefully, someone officially investigating has already directed PNCC to get PSB's and Mr. Taunton's internet/e-mail records QUICKLY since PNCC deletes those backup files periodically (what is it every 3 months or so)?! And maybe the same with Ms. Ragle's records? And the Mr. Taunton/PSB/others' cellphone records which, also, PNCC might delete or lose? And why should we the citizens and taxpayers have out tax money used by the OEK/so-called government leaders to bail out---ONCE AGAIN SINCE 2001---the mistakes and apparent unethical, unlawful, fiduciary-breaching malfeasance of PBS and its OEK conntected shareholders (hello Mr. Johnny Reklai), officers, directors, employees? Why should we let out taxes be used to pay when everyone knew after the first time that PSB had no FDIC insurance and then---instead of being greedy to get interest on checking accounts---just put our money into the less-interest-paying but recognizably safer Bank of Hawaii FDIC insured bank? Go after these crooks not just in Palau but on Guam and the U.S. getting the U.S. to investigate and prosecute under U.S. laws. Not to mention the place where Mr. Taunton is hanging out...saying that he was born in 1949 but then listing his age as 59? Make the people who knew about and hid the PSB's mistakes and misconduct pay for them, with repayment money and jail time, but the rest of us should not have to see these same clowns using their positions or friends at OEK and the government to now help and hide and escape from their misconduct. Have information you want us to pass on to investigators in Palau or Guam or the U.S.??? Let us know by e-mail address: StopPSBThievery@yahoo.com Your friends "PSP Scam Stoppers"

PSB Scam Shoppers;
Is there anyway we can get his picture? I can find a way to print his picture and distribute it across the USA.

I just called my brother and he can't do anything this holiday because his money is tied up. Mr Tauton, you have caused so much pain to our people. How can you enjoy this holiday knowing what you have done? I know you are reading all the news from Palau regarding PBS. Your sins will find you out. I know that someone helped you get out of Palau.

Mr Reklai, Altae betok a udedem e ngarbad el chad, ngdi ngarngii a right er ngak loker er kau since ekemla cause a harship el mora famimy member er ngak el kmo; Kau kengeral senator er kid. Ngdiak kora ubtetrir tirkal bebir rarechad el kmal chebuul. Be a man and answer me?

Ma dirrek e senaror Reklai, you don't deserve the title anymore. Bai merekong e bomerek. Ailechal udedem adi udoud ra goverment er belau. Ma morous el mora mechebuul. Shame on you.


If there is a warrant for Mr. Tautan's arrest than Palau can ask the US FBI to assist it in extraditing him back to Palau to face the charges. Palau has an extradition treaty with the US.

when someone hurts one of my family, I will make sure these people pay. Mr Tauton, I'm waiting to get your picture. If you live in the USA, we will find you....unless you get a stroke before I get to you.

Mr. Reklai, kau kemerur ngdiak sel drive el mora melekeok ngdiak. Alii ngarngii aikel bekei el chelid ra techobei.Make sure you get home before it gets dark.

See the following link for a nice look at the face and profile of the villainous man who robbed Palauans (fourth picture down), thanks to and courtesy of Pacific Magazine:


You are in the states, help me find this s.....,. He thinks, we are stupid. Well, we will show him.


We cannot do anything within the law to punish the man, and we can only wait till Mr. Taunton is legally charged with a crime in Palau. By then our law enforcement through proper ROPG agency(ies) can formally request the USG to extradite the "criminal" back to Palau. I am only worried that he is smart enough to know this and could possibly be buying himself comfort and evasion somewhere in a "third" country where Palau nor the US has extradition treaty with. That is my biggest fear, which is common in cases involving crooks like Taunton.

We should vigorously urge our leaders to act quickly to address this whole mess, because the more time that goes by, it only means "freedom" for Taunton and his crime partners.


I feel your pain. I, along with many of my family members and close friends, have also been affected by the closure of the PSB.

We must allow the legal mechanism of our country work to adjudicate this crime. It is a crime and we must view it that way. If we take the law into our hands, then nothing positive will come out of it.

Tauton can run for now, but he can't hide forever. He has a house in Airai that can be possessed and his partners, like Senator Reklai, are also liable so we haven't lost everything.

Senator Reklai, if he's a nice person, should bail this bank on his own, save his face and honor

It was Sen. Reklai that the people trusted back in 1991 enough to buy stocks and open their savings with PSB. If it was just Tauton, then we Palauans would have treated it like any of these "questionable" banks in Palau today and we would not be in this mess.

Senator Reklai must recognize this and do what is right for his people.


If HOD Legal Counsel Imelda Nakamura indeed posted on the Bridgelist what Ores had provided on this blog then, you can see why we, PSB Depositors, are in this mess.

HOD enacted FIC enabling act and now she questions the source of authority for FIC's conduct. Exactly, where were you? Where are you?

Find a way for FIC to repo assets of PSB officials who took loan on depositors savings and sell them so we can get some of our deposits back.

VOICE our concern to HOD and do something.

Don't bark at FIC.

Please don't call him senator Reklai... call him Merechorch Reklai.

There's a lot of rumors and supposed truths flying around,,,blame and or outright personal attacks and name calling going on..it seems nothing is being thought out before its put out for many to read...

Slow down people...It is not the end of the world..or of Palau..
A crime has been committed by a few affecting many so lets be careful we don't add to the aggravations the victims of this crime have suffered.

I would also urge the bloggers in here to refrian from so harshly criticizing and or outright calling people names. It doesnt serve any purpose.

I'd like to also say that what Imelda (HOD LEGAL COUNSEL) was saying..and now this is my interpretation of what she was saying..not a defense of her...she's a lawyer and I am sure can defend herself with out my help...

Was that the FIC has the laws, procedures..etc already in the books to do thier job...and they had no right anywhere to put PSB into recievership or take over it's managment..
They had the law behind them to regulate the bank but no legal right to take over the managment...it being a private bank.
Make sense to me and we shall see if its true or not...

From what she said...the FIC was asking for more power to enable them to close a "private" bank and or take over its management and that to her was tantamount to Communism..True..why would a govt. entity need additional powers so that they could take over a private business for whatever reason?...That's a scary thought if it was true..and a legitimate concern for a democratic nation as ours.

Essentailly the FIC failed to regulate PSB with existing laws, had no legal right to put it into recievership or take over it's management and didn't need any new or amended laws to prevent this crisis.

It will all eventually be told...explained and hopefully sorted out so that we can see for ourselves what really happened and what was true or not...

There are still a lot of unanswered questions so lets give those charged with the reponsibility of investigating this matter a chance to answer them instead of assumptions, suppositions, rumor mongering or personally attacking people..

Thank You

Imelda should read the law. I've called around and you can get a soft copy of the law from the FIC. fic@palaunet.com.

The lady seemed nice enough at the FIC; said there are only two of them working in the office - office assistant and a "commissioner".

Again, my question to Senator Asanuma is if this agency has enough people to "regulate" 8 banks. Is their board and office qualified to do this?

IMELDA: Isn't your sister/cousin Margo Llecholech, a Director of the Bank? and aren't you from Choll, Ngaraard???, same as Senator Reklai??
Are you related to the esteemed Senator? Explain please and give us information to support your statements. Have you read the law and do you understand banking enough to comment?

It seems like people doing their job, as I take it from reading the law and the CPA Review.
In any case IMELDA, how do you propose to give people their money back from a bankrupt bank? Do you have any suggestions?

I heard that the amendments to the bank act have been in the Senate and the House since 2003, in the 6th OEK, according to last week's press conference on Eco Paradise (it was televised later that evening). Is this true??? They (FIC) were talking about getting a "true picture" of PSB but the law didn't let them check the numbers submitted to them via a "bank examination." Is this true or an excuse?

The banking law looks like it doesn't give the authorities the "authority" to
"examine" banks, at least until like 2006 (Section 77).

IMELDA: Are you aware that banks use mostly other peoples' money (OPM) to make money, unlike other kinds of businesses and should be looked at by the government to make sure they are operating ok? Just like insurance companies that take in premiums and regulated by the Government. Since you are in such a high position, maybe you can help shed light on this.

FIC: Why did this happen? People/depositors need to know. Where are the culprits and why were they allowed to leave??? What the hell are you doing????


Funny how you changed your tune when issues or concerns doesn't relate to you personally.

It is hard to wish everyone in Palau a Happy Thanksgiving but I hope we can get through this. May God Bless our Island.


Wouldn't you?... :)
And is what I said any less true because it isnt personal?

I just heard the presidents press conference on line..
and from what he saying it's
basically the OEK that failed to give the FIC some teeth to prevent the PSB failure..That's the presidents side...we'll wait for the OEK..I am sure they've got their own version.
From the presidents statement..
Imelda may be right regarding her concerns over the legality of the FIC taking over and dissolving PSB...

The president said that the FIC lacked some sharp teeth to keep PSB in line and had no legal authority to put the bite ont them...if that's true..by what authority did they take over the bank?

Now I'm not saying that the FIC shouldn't have taken over the bank...I'm asking by what authority did they?

Her concern maybe personal as some have clearly stated..but it still is
a legit concern when the statements we hear from our officials contradict actions they have taken.

Let's wait and see what the OEK has to say too..


Maybe because the current FIA does not require banks to publish their audited balance sheet nor does it give FIC power to compel this audit, maybe that is the missing teeth.

But having Mr. Taunting serving on FIC while a Preisdent of PSB is like having, as we put it in Palauan, a katuu el mlo mengkar e ra eluomel." Result, he stomached the 'eluomel'.

Here is a guy, a graduate of Wharton School, a founder of a bank, being placed at FIC Board. Looks like he overwhelmed his peers at FIC board leading to delay of PSB complying with FIC requirements.

Sem is the "commissioner" of the FIC, what relation is he to the President again...lol Mr. Pres is just trying to keep the heat off FIC, his commission, and put the lump into the OEK, this has been going on for a while, an example of which was when Sem went to the Senate hearing and told the Senators they did not know what they were talking about, and that they should not talk about things they did not understand. Just heard an interesting rumor that the Senate President in all this turmoil was going to step down...wow, that would make the next in line our dear Senator Diaz...lol
Imagine that, this morning the President was insuletd by the indirect proposal from Mr. Morrison to bail out the PSB...I guess he is used to being kissed before he gets bought...lol, those Malaysians don't have the tact of the Taiwanese, ah, what a pity...
Ai kantut...


Very interesting. You mention Senator Reklai stepping down. Is he stepping down from his elective post as senator? Or, is he stepping down from being a President of the senate?

Maybe Sem is right, senators do not know FIC enough to talk about it. Or, maybe enough number of senators do not know the regulatory functions of FIC or the banking industry to talk about it. Just imagine, they confirmed Mr. Taunton to serve on FIC.

Please get a copy of the law and read it. If you know anything about business or banking, it will be clear on what was/wasn't done and what may/may not need improvements in the law.

Question is, what is being done and how to fix things from here on and who is supposed to do what?

All the while, people are without their money.

Hey I've seen some comments about people I knew such as Tim and Margot, these are not bad people, those of you who know Margot know she is as honest as they come. Wait for the facts to come out. Also, I can't believe John De Vivo is a rogue, you will also know he was a brother to many of you. I can only hope that all your money is returned to you as it should be, have faith.

As a complete aside, as today is Thanksgiving, I thought I'd let you know of your connection with this day. The ship that took the prince from Ulong to London, docked at the very same point that the Mayflower left from to take people to the free world. His resting place is still there in Rotherhithe.

I am writing this from Kabul, Afghanistan where so much damage has been done. Look around you and you will see you live in one of the most beautiful countries in the world. Keep your government honest, defeat corruption and remember that old traditions should never be abused or used for abuse.

Thank you so much for letting my family and I share your country for several years. I ache to return, when I was there I used to have horrible dreams whereby I had left Palau and could not return. I had them quite often, there is something so special about your home, don't let money ruin your appreciation for what you have.

Kek malsulang (I've been away too long, forgotten my spelling)


thank you for your kind and wise comment. I share your views on Margo and John. Be safe and rest assured that we will do our best to keep Palau the paradise you left it until you return.

Happy Thanksgiving.

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